October 24, 2017
Tuesday’s Regulatory & Legislative Roundup
- The United States Department of Housing and Urban Development (HUD) and the U.S. Department of Justice partnered together to tackle the issues surrounding the Federal Housing Administration and consumer practice. Consumers, at an alarming rate, are falsely filing claims against FHA lenders which is bolstering the number of suits in federal court. As a result, less consumers are able to appreciate the benefits of such programs and federal courts are burdened. The pair of agencies partnered together to determine an efficient and effective way to protect the consumers that act in good-faith with the agency so that other consumers do not pay higher costs through mortgage rates.
- Unlike the Department of Justice and the United States Department of Housing and Urban Development (HUD), two other federal agencies are butting heads. The Consumer Financial Protection Bureau (CFPB) and the U.S. Department of Treasury (Treasury) are at odds over the CFPB’s arbitration rule. The Treasury believes the agency’s rule fails to adequately protect businesses because it opens the door for class action suits. To combat this rule, the Treasury released a report detailing the drawbacks of the rule. For instance, this new rule could potentially add approximately three thousand new lawsuits to the federal docket.
